GENIUS Act, the first US federal stablecoin law, is signed

Circle/USDC

President Trump signed the GENIUS Act on July 18, 2025, establishing the first US federal regulatory framework for payment stablecoins. Issuers must maintain 100% reserves in liquid assets (dollars or short-term Treasuries) and publish reserve composition monthly. The Act includes consumer protections (holders prioritized in insolvency) and national security features (seizure/freeze/burn capabilities).

• 100% reserve requirement in USD or short-term Treasuries; issuers cannot claim government backing, federal insurance, or legal tender status.
• Mandatory monthly public disclosure of reserve composition; stablecoin holders prioritized ahead of other creditors in insolvency.
• Issuers must comply with Bank Secrecy Act (AML/KYC) and possess technical capabilities to seize, freeze, or burn assets when legally required.